The Rupee closed stronger against the U.S. dollar on Tuesday, snapping a three-day slide as index-rebalancing inflows and trimmed dollar longs lifted sentiment in thin year-end trade. The rupee ended 0.2% higher at 89.79 per dollar after opening at 89.9325. It stayed rangebound through the morning and had settled at 89.9750 on Monday. Several traders said corporate activity stayed muted and focused on routine near-term flows, buying or selling dollars to meet payables or convert receivables, with few firms taking fresh directional bets. Hedging was light, indicating companies were reluctant to add longer-dated cover at current levels. The rupee held a narrow range, with participants citing the central bank’s expected presence near the 90 level as a key backstop. That perception has anchored spot moves and reinforced a sideways bias in thin year-end trade. Dollar/rupee forward premiums eased again, with the one-year implied interest rate down about 10 basis points to 2.71%. The pullback followed the central bank’s plan for a $10 billion buy/sell swap and a drop in rollover costs from Dec. 31 to Jan. 1. The dollar advanced on Tuesday ahead of the release of minutes from the Federal Reserve's December meeting, as investors attempt to gauge the path of monetary policy. Later on Tuesday at 2 p.m. EST, the minutes from the Federal Open Market Committee's meeting earlier this month will be released, in which the U.S. central bank cut rates and projected just one more reduction for next year, although markets have priced in roughly two more. The dollar index , which measures the greenback against a basket of currencies, rose 0.13% to 98.13, while the euro was down 0.08% at $1.1762 on the day - but up more than 13% on the year. Sterling weakened 0.27% to $1.3472 but is up nearly 8% against the dollar for 2025. The dollar index , which measures the U.S. currency against rivals, is down 9.5% on the year, its steepest decline in eight years as Fed rate-cut bets, shrinking interest rate differentials against other currencies and concerns about fiscal deficits and political uncertainty have all weighed on the greenback. The yen weakened 0.14% against the greenback to 156.3 per dollar, although the Japanese currency has strengthened in recent days to move away from levels that drew statements from officials in Tokyo last week and increased market expectations about a possible intervention by the Bank of Japan. China's onshore yuan pierced the psychological level of seven to the dollar for the first time in 2-1/2 years, defying weaker central bank guidance, as exporters rushed to sell dollars at year-end. The yuan hit 6.987 per dollar , its strongest since May 2023. It has gained 4% against a weaker dollar since early April when U.S. President Donald Trump announced sweeping tariffs, and is set to snap a three-year streak of declines. Oil prices were little changed on Tuesday as investors took stock of dented hopes of a Russia-Ukraine peace deal and rising geopolitical tensions in the Middle East around Yemen. Brent crude futures for February delivery , which expire on Tuesday, were up 27 cents, or 0.4%, at $62.21 a barrel at 1426 GMT.......